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Had this problem earlier this year on my '95 S320. (Do a google search on biodegradable wiring harnesses in early to mid 90's Mercedes for some background on the problem). After being told by the dealer that I was on my own, I persisted and called 1-800-for-merc and spoke to the customer service people. They handed me off to someone who politely told me I was on my own. It seems that this issue never resulted in a recall, just a service note for cars whose wiring harnesses degraded during the factory (or Starmark) warranty periods.
I was courteous, but insistent that my car only had 9 years and 85,000 miles on it and that this was unacceptible for a Yugo, much less an S-Class Mercedes. Hell, I had once a 30-year-old Ford with perfect wires.
After about fifteen minutes of arguing, they called the dealer and agreed to pay for the wiring harness as long as I paid the labor. Seemed fair to me. $300 later, all my wiring gremlins disappeared.
Regardless of who pays, I'd get the harness replaced. It will save you untold aggravation and possibly a few $$$. Sure would hate to burn out an engine computer because of a short...
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'87 300D 183K
'06 E320 CDI 10K
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